Progressive Insurance, one of the largest auto insurers in the United States, has been the subject of multiple high-profile class action lawsuit in recent years. These cases have resulted in hundreds of millions of dollars in settlements — real money paid to real policyholders who were allegedly underpaid on vehicle claims, affected by a data breach, or incorrectly billed for insurance coverage.

This guide breaks down every major settlement in plain language: what happened, who qualifies, how much money is available, and exactly how to file a claim. Whether you are a current or former Progressive policyholder, this article will help you understand your rights.

At a Glance: Major Progressive Settlements (2024–2025)

Note: In all cases listed above, Progressive denies wrongdoing. Settlements were reached to avoid the cost and uncertainty of trial.

1. Vehicle Total Loss Underpayment Lawsuits

The largest and most widespread category of lawsuit against Progressive involves total loss claims — situations where a vehicle is deemed beyond repair after an accident, theft, or natural disaster. When a car is totalled, the insurer is contractually required to pay its actual cash value (ACV). Multiple lawsuit across several states alleged that Progressive systematically short-changed policyholders in these situations.

The Alleged Problem: Projected Sold Adjustment (PSA)

At the centre of most of these lawsuit is a piece of software called WorkCenter Total Loss, made by Mitchell International, Inc. Progressive used this software to calculate how much to pay on total loss claims.

Plaintiffs alleged that the software applied a hidden deduction called the Projected Sold Adjustment (PSA) — a downward reduction applied to comparable vehicle prices used in the valuation calculation. In plain terms, the software found cars similar to the totalled vehicle, listed their prices, and then subtracted a percentage from those prices before using them to value the claim.

Plaintiffs argued that this adjustment had no basis in real market data and amounted to systematically lowering payouts below what policyholders were lawsuit legally owed.

Settlement #1: New York — $48 Million (2024)

Approximately 93,000 New York policyholders were affected. The $48 million settlement represented roughly 54% of the total compensatory damages claimed by plaintiffs, lawsuit plus pre-judgment interest.

After attorney fees and administrative costs, approximately $31.3 million was distributed to class members. The average individual payment was approximately $335, though the actual amount varied depending on how many class members filed claims.

Coverage period: New York drivers who filed total loss claims since July 28, 2015.

Settlement #2: Michigan — $61 Million (2024)

This settlement, one of the largest in Progressive’s history, resolved two consolidated lawsuit involving 168,812 class members. lawsuit Progressive paid $61 million to class members, with an additional $10 million in plaintiff attorneys’ fees and administrative costs — bringing the total to $71.8 million.

The lawsuit alleged that Progressive breached its insurance policies by failing to include sales tax, certificate of title fees, and vehicle registration transfer fees in total loss payments — fees that policyholders had to pay out of pocket when replacing their vehicles.

Coverage periods:

• Progressive Marathon policyholders: July 18, 2013 – July 22, 2024
• Progressive Michigan policyholders: July 18, 2016 – July 22, 2024

Settlement #3: Georgia — $43 Million (2025)

Georgia residents who made a first-party total loss claim on a Progressive policy between October 11, 2015 and February 18, 2025, and whose claim was valued using Mitchell’s Instant Report with the Projected Sold Adjustment applied, may be eligible.

The average estimated payout is approximately $173 per qualifying class member, though the final amount depends on total participation. The deadline for exclusion and objection was April 30, 2025.

2. Data Breach Lawsuit — $3.25 Million Settlement

What Happened

On May 19, 2023, Progressive was notified of a serious security incident involving one of its third-party call centre vendors. An investigation revealed that call centre employees had improperly shared their Progressive system access credentials with unauthorized individuals.

Those unauthorized individuals had access to Progressive’s network from approximately May 2021 through May 2023 — nearly two full years. During that period, they could view the private information of approximately 347,100 customers.

What Data Was Exposed

The personal information potentially compromised in the breach included:

• Full legal names
• Home addresses
• Social Security numbers
• Driver’s licence numbers
• Financial account numbers and details
• Insurance policy information

What the Settlement Provides

Progressive agreed to pay $3.25 million to settle the lawsuit. Class members — those whose information was potentially accessed between May 2021 and May 2023 — could receive:

• Three years of credit monitoring and insurance services (including $1 million three-bureau credit monitoring) at no cost
• Compensation for documented monetary losses up to $5,000 per person
• A pro-rated cash payment from the net settlement fund for those who did not claim documented losses

The official settlement website was ProgressiveSecuritySettlement.com. The claim deadline was February 18, 2025, and the final approval hearing was held February 25, 2025.

3. Uninsured / Underinsured Motorist (UM/UIM) Coverage — $1.76 Million

This lawsuit targeted Progressive’s practice of charging premiums for “stacked” UM/UIM coverage on policies insuring only a single vehicle. Stacking allows policyholders to combine coverage limits across multiple vehicles — but plaintiffs argued this feature provides no benefit (and therefore should not be charged) when only one vehicle is insured.

The settlement covers Progressive policyholders who resided in New Mexico and purchased a policy that included stacked UM coverage while insuring only one vehicle between January 1, 2009, and April 30, 2025.

Individual payouts vary and are distributed on a pro-rated basis. The claim and objection deadline was January 12, 2026.

4. Debt Collection Emails — $500,000 Settlement (Florida)

A smaller but notable settlement resolved a Florida Lawsuit alleging that Progressive sent debt collection emails to residents outside the legally permitted hours allowed under Florida state law. While the $500,000 total is modest compared to the total loss cases, the lawsuit demonstrates that Progressive’s compliance practices extend well beyond claim handling.

Eligible Florida residents who received improper debt collection communications from Progressive were entitled to a pro-rated share of the settlement fund.

5. Who Qualifies for a Progressive Settlement?

Eligibility varies by settlement, but you may qualify if you fall into one or more of the following groups:

Total Loss Claims (New York, Michigan, Georgia)

• You held a Progressive auto insurance policy during the relevant coverage period in your state
• Your vehicle was declared a total loss and you received a total loss claim payment from Progressive
• Progressive used Mitchell International’s WorkCenter Total Loss software with the Projected Sold Adjustment to calculate your payout (applies to NY and GA cases)
• Michigan claimants: your settlement did not include sales tax, title fees, or registration transfer fees

Data Breach

• You were a Progressive customer whose personal information was potentially accessed between May 2021 and May 2023
• Progressive identified you as part of the affected class and may have sent you a notice
• You reside in the United States

UM/UIM Coverage (New Mexico)

• You resided in New Mexico and held a Progressive policy with stacked UM/UIM coverage
• Your policy covered only a single vehicle
• Your policy was active between January 1, 2009, and April 30, 2025

Debt Collection Emails (Florida)

• You are a Florida resident
• You received a debt collection communication from Progressive outside permitted hours

6. How to File a Claim — Step by Step

Each settlement has its own claims process, but the general steps are consistent:

1. Check your mail and email inbox. Settlement administrators send official notices to potentially eligible class members. These contain a unique ID number you will need to file online.
2. Visit the official settlement website listed in your notice. Do not use third-party sites or services that charge fees — filing is always free.
3. Complete the claim form using your personal information and unique ID. For documented loss claims (data breach), gather supporting documents such as bank statements or receipts.
4. Submit before the deadline. Late claims are generally not accepted. Note deadlines vary by settlement and state.
5. Wait for final court approval. Payments are not distributed until all appeals are resolved after the court’s final approval order.

7. Your Rights as a Class Member

As a member of a certified class action, you have several important rights:

The Right to Stay In

By doing nothing, you automatically remain part of the class and are bound by the settlement terms. lawsuit give up the right to sue Progressive separately for the same claims, but you are eligible to receive compensation.

The Right to Opt Out

If you believe your individual damages are large enough to justify filing your own lawsuit — for example, if your vehicle was significantly undervalued — you can opt out of the class. Opting out preserves your right to sue individually but means you receive nothing from the class settlement.

The Right to Object

If you believe the settlement is unfair or inadequate, you can file a written objection with the court before the final approval hearing. lawsuit judge will consider objections before deciding whether to approve the deal.

The Right to Consult an Attorney

You are always entitled to seek independent legal advice about whether staying in, opting out, or objecting is in your best interest. Many consumer protection attorneys offer free consultations.

8. State-by-State Settlement Guide

Because insurance is regulated at the state level, your location determines which settlements may apply to you. Here is a quick guide:

Note: Insurance class actions are frequently state-specific because insurance contracts and regulations differ by state. If your state is not listed, similar lawsuit may be in progress. Monitor classaction.org and topclassactions.com for updates.

9. Frequently Asked Questions (FAQ)

10. What These Lawsuits Mean for the Insurance Industry

The Progressive lawsuit did not occur in isolation. Similar total loss valuation cases have been filed against other major insurers including State Farm, GEICO, Allstate, and USAA, many of them also targeting the Mitchell WorkCenter Total Loss software and the Projected Sold Adjustment.

The core legal question — whether software-driven downward adjustments to vehicle valuations violate insurance contracts and consumer protection laws — remains actively litigated across the country. The multi-hundred-million-dollar settlements by Progressive suggest courts and companies alike recognize these practices carry significant legal risk.

For consumers, these lawsuit have accelerated several industry-wide changes:

• Greater transparency requirements around total loss valuation methodology
• Increased scrutiny of third-party software vendors used in claims handling
• Stronger state insurance department oversight of PSA-style deductions
• More explicit policy language about what fees must be included in total loss payments

If you believe your total loss claim was handled unfairly — regardless of whether it is covered by an existing settlement — you have the right to request a detailed explanation of how your vehicle was valued from your insurer, and to dispute the valuation with supporting market comparisons.

Conclusion

Progressive Insurance has paid out hundreds of millions of dollars across multiple class action settlements in recent years. These are not hypothetical lawsuit — they are finalized, court-approved agreements that real policyholders across New York, Michigan, Georgia, New Mexico, Florida, and nationwide have benefited from.

If you are or were a Progressive policyholder, it is worth checking whether any of the settlements described in this article apply to you. Key actions to take:

• Check your email and physical mail for any settlement notices from Progressive-related cases
• Visit classaction.org and topclassactions.com for current open settlements
• If you received a total loss payout from Progressive in recent years, review whether your state has an active or settled lawsuit
• If you were notified of the 2021–2023 data breach, check whether your claim deadline has passed and whether additional remedies are available
• Consult a consumer protection attorney if you believe your damages exceed what a class action settlement provides